Transit for Livable Communities asks legislators to reject a $200 million government subsidy for Mall of America parking ramp

By Barb Thoman, Transit for Livable Communities' Program Director

The Mall of America, a private business, wants $370 million in taxpayer funding to pay for an 8,000-space parking ramp as part of a proposed future expansion. The MOA is asking the legislature to authorize $370 million in tax increment financing (TIF), using an exemption from the fiscal disparities pool.  This raises hard questions about equity, as the money would used would be diverted from lower tax base cities and towns from around the state. An alternative plan has the subsidy coming from the City of Bloomington.  With either plan, this subsidy is a bad idea from a transportation perspective. 

The region does not need a $200 million subsidy for driving at time when we should be investing in ways to make it possible for people to drive less.  Taxpayer dollars should be used to better maintain the transportation infrastructure we already have and expand light rail, regional rail, bus service, bike trails, bike lanes, sidewalks, and car sharing.  Those investments will help Minnesota meet its climate change goals, better serve an aging population, and provide alternatives to high gas prices.  

Transit is a great economic development investment and it’s an even better investment in times of recession.  Before we consider subsidizing a parking ramp for the MOA, let’s make sure Central Corridor has its state funding match. After that, how about building a streetcar or bus rapid transit line (we could sure use one on American Center Boulevard to serve the 494 strip),  or the next Midtown Greenway bike/pedestrian trail, or fast-tracking another of our region’s planned transit corridors. These are the kind of transportation and economic development investments that will make this region stronger and more sustainable. Consider the following numbers.

Over 7,000 housing units have been built along Hiawatha light rail. The Midtown Greenway bike and pedestrian corridor is transforming that sector of south Minneapolis. Portland Oregon’s city-owned streetcar line, which cost $100 million, has stimulated in $2.4 billion in new development.  In Denver, 11,000 housing units, 4,000 hotel rooms, 9 million sq. feet of retail, office space, and convention/sports facilities have been built or are under construction along that region’s three existing light rail lines. Local funding for six additional corridors has been secured.  And Dallas’ light rail has created over $1 billion in economic development since 1996.

Taxpayer subsidized parking for the Mall of America is not a sound strategy for the region’s future.  Please phone the members of the Tax Conference Committee and your own legislators.